To be called Bagrry's On the Go, these stores will serve food and beverages such as oats-based sandwiches, burgers and bagels.NEW DELHI: Bagrry’s India Ltd., the country’s oldest breakfast cereal maker, is venturing into food retailing with quick service restaurants that will offer healthier alternatives to fast foods dished out by chains such as KFC and McDonald’s.

To be called Bagrry’s On the Go, these stores will serve food and beverages such as oats-based sandwiches, burgers and bagels, muesli and wheat bran-based desserts and multigrain meals for lunch and dinner, Aditya Bagri, son of founder Shyam Bagri who is spearheading the retail business, told ET. The Rs 77 crore Bagrry’s, one of the biggest suppliers of wheat for Nestle India’s Maggi noodles, is tying up with third-party kitchens to source cooked food made with its own ingredients.

“The entire focus will be on healthy foods and every food or beverage we serve will have our own ingredients,” Bagri said. The sandwiches, pastas, bagels and wraps will be made with multigrain options, with whole wheat and added bran or oats to enhance fibre and nutrition value.

The niche identified by New Delhibased Bagrry’s, which has been in the cereal business for over two decades, could help it turn around investments in quick time.

The country’s quick service or fast food industry is forecast to grow to $4.6 billion by 2020, more than doubling from two years ago, according to a report by researcher Technopak Advisors Pvt.

Bagri said funds for the food retail venture are being raised internally and as the model evolves, the company could look at a larger footprint. To start with, Bagrry’s On the Go outlets will be restricted to the northern region of the country and the first store is scheduled to open early next month in the capital.

“The consumer trend of well-being moving towards the QSR space will accelerate with brands venturing to healthier options,” said Rahul Singh, secretary of the National Restaurant Association of India.

Bagrry’s share in breakfast cereals is over 17% in a market estimated at over Rs 800 crore, according to researcher Euromonitor. The category is expected to grow at a compounded annual rate of 13%.

The segment is dominated by multinational Kellogg, the world’s largest cereal maker, and has seen the entry of brands such as Marico’s Saffola and MTR.